R&D investment, corporate social responsibility disclosure and firm's green innovation performance: evidence from China

Given the contesting empirical literature on the relationship between Research and Development (R&D) investment and firms' green innovation performance (GIP), the current research is a unique study to look at the moderating effects of corporate social responsibility disclosure (CSRD) on this relationship. We used dataset of 3248 firm-year observations of A-share listed firms in China from (2012-2020). The CSRD issued by Chinese Stock Exchange and the Accounting Research Database (CSMAR) is used to measure CSR information. The Corporate GIP of a firm is considered and measured by examining the total number of green patents. Finally, multiple regression and fixed effects models were used. The results reveal that CSRD has anaffirmative and significant impact on the relationship between corporate GIP and R&D investment which implies the compensatory and supportive role of CSR strategies in shape of green signals in the green outcomes. This research could support managers and policymakers of underdeveloped nations inestablishing environmental innovation strategies for corporate sustainability.